Mary C. Daly

Join us on May 8 for a special presentation from Chip Espinoza, Ph.D., 'Seven Skills to Advance Your Career'. Learn more and get registered: https://bit.ly/3OfAjKI Our PD Session will be presented by Fifth Third Bank. Speakers: Morgan Luddeke, JD, CEPA®, Senior Vice President, Director, Business Transition Advisor Roman Lefranc, Senior Vice President, Managing Director, Investment Banking Corporate Finance Frieda Rakhman, Senior Vice President The seven skills are the result of an international study about Young Professionals at work. The research revealed what young professionals perceive to be roadblocks to advancing in their careers. The skills presented will demystify both the disappointment and frustration experienced while pursuing career success. The content of the talk will also be helpful for managerial leaders who are trying to develop younger employees. Among other things, we will discuss how to overcome a lack of experience, being perceived as entitled, and negative feedback. The skills are a career accelerator. #financialexecutivesinternational #cfoorangecounty #feioc

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Insightful report by Nate Scherer and Isaac Schick highlighting how the FHLBanks’ have evolved as economic realities and congressional mandates have changed over the past 90+ years, yet have held true to their mission of providing liquidity to members in support of housing and community development.    "It is unrealistic to expect the FHLB to maintain the same structure over nearly a century" and "perform new public services like providing profits to the Affordable Housing" Program (AHP). "Since 1990, all 11 FHLBanks have contributed over $7.6 billion ... supporting over one million households. The FHLB did not have to contribute funds towards housing in this manner when it began, thus its role in promoting homeownership has expanded, not declined."    The report also recognizes that the system voluntarily increased its commitment to support affordable housing and community development above the 10 percent statutory requirement to 15 percent during 2023, which has meant hundreds of millions of dollars in additional investments in affordable housing and community development in 2023 and 2024. 

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Just released, this paper from L. Randall Wray and Eric Lin looks at the relationship between government budget deficits and the growth rate of GDP by exploring the nuanced approach given by Modern Money Theory. Read now: https://lnkd.in/eQ2JsNJG

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Poetic rhetoric, and yes re the role of PBR in framing the consideration of prudent and efficient performance. But ratebasing operating expenses is contrary to sound regulatory practice and places unnecessary burdens and risks on ratepayers. https://lnkd.in/e_UWkp3g

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🏦 Industry Insight: The Continued Consolidation in U.S. Banking The recent seizure of Republic First by U.S. regulators, followed by its acquisition by Fulton Bank, signals ongoing consolidation in the banking industry—a trend mirroring Canada’s model where a handful of large institutions, known as the "Big Five," dominate the market. Drawing from my experiences with Canada's stable yet efficient banking sector, it's apparent that U.S. banks could glean significant lessons. For instance, Fulton’s acquisition, which nearly doubles its presence in Philadelphia, raises questions about the effects on competition and consumer services. As we witness U.S. banking inch closer to a Canadian-style consolidation, what could this mean for competition and consumer advantages? How can we strike a balance between banking stability and a competitive market landscape? Both aspects theoretically benefit consumers, but I’m keen to hear your thoughts: How might these trends reshape the banking industry and inform future business strategies? #banking #finance #regulation #businessstrategy #marketconsolidation #CanadianBanking

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Closing out 2024 thinking about the Fed's Summary of Economic Projections (including the dot plot). What else? In my new Substack post: https://lnkd.in/eNM7Qshh, I explain how the December SEP fell far short of the original promise Bernanke made in 2007 when the SEP started. And it matters. In the spirit of the upcoming framework review, I offer some ideas on improving the SEP. However, my fundamental concern remains that the SEP is an individual event (a collection of forecasts), whereas monetary policy is a team sport. The SEP must find a way to convey its role as an input in the policy process more clearly. Or the FOMC must craft a consensus SEP. The medians in the SEP are not the Fed forecast and never will be.

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Can you increase someones financial knowledge? Yes...BUT what about subjective measures like financial self-efficacy, propensity to plan, even risk tolerance? That's the question Paul Gerrans, Arvid Hoffmann, Dr. Si McNair and I addressed in our NEWLY ACCEPTED paper in the Pacific Basin Finance Journal, which is already available as a pre-proof here: https://lnkd.in/gQ2Wvhwi It was a bit of a rollercoaster getting this one published BUT it's a pretty cool study because Paul had run an experiment putting some students through a financial literacy course (and others not). Then after waving a magic stats wand at it (aka a Latent Transition Analysis with dynamic states) we were able to show different sub-categories of individuals whose financial literacy AND subjective measures evolved in different ways. The interesting thing is that while participants mostly got better on objective measures (as you'd expect) they differed on subjective measures, with some even becoming what we'd call Overconfident. We were also able to show how different individuals moved between states over time as a result of the training, as well as individual factors like confidence in their own ability to search for financial information. Great to work with this team and throw my 'modelling' skills at an interesting topic! Also for those playing along with my 'year that wasn't' last year its pretty nice to have something accepted a week into this year! Let's hope that kind of trend continues 😉

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🚨 New Episode Alert! 🚨 The latest episode of The FinReg Pod features an insightful conversation with Graham Steele, former Assistant Secretary for Financial Institutions at the U.S. Department of the Treasury. Graham and I discussed insights from his latest paper for the Roosevelt Institute, "The End of Banking History? Finishing the Unfinished Business of Financial Reform," which outlines key areas of financial regulation that still need attention, including capital requirements, bank mergers, and systemic risk. We covered: 🔍 Spring 2023 Regional Bank Crisis: What led to the recent failures of institutions like Silicon Valley Bank and Signature Bank? Graham breaks down how deregulatory policies of the past contributed to these collapses and what can be done to prevent similar crises. 🌐 The Impact of Basel III Endgame and Future of Bank Regulation: What do the proposed changes mean for the stability of the financial system and how did bank lobbying weaken the proposal? How will they impact the largest and most complex financial institutions? 💡Regulating Fintech and Crypto: Should fintech companies and non-bank financial institutions be regulated like banks? And what risks does the banking sector face from its exposure to cryptocurrencies? Don’t miss it—tune in now to The FinReg Pod on your favorite podcast platform! 🎧👇 https://lnkd.in/eNc2sqy8 #FinReg #FinancialRegulation #Banking #Fintech #Podcast #Finance #Crypto #BaselIII #FinancialPolicy

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By law, the Federal Reserve conducts monetary policy to achieve its macroeconomic objectives of maximum employment and stable prices. Usually, the FOMC conducts policy by adjusting the level of short-term interest rates in response to changes in the economic outlook. Since 2008, the FOMC has also used large-scale purchases of Treasury securities and securities that were issued or guaranteed by federal agencies as a policy tool in an effort to lower longer-term interest rates and thereby improve financial conditions and so support the economic recovery.

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Fed Chair Jay Powell will deliver his annual remarks this Friday at the Fed’s Jackson Hole Economic Symposium. With the Fed poised to start its rate-cutting cycle next month, any hints on the size and speed of the adjustments will be highly sought. His earlier speeches there, which tell us a considerable amount of how he thinks at a high level about monetary policy, are a good preview. Here are my takeaways -- text and more details in my Substck post -- from his earlier remarks: 2018: Go slow unless it’s a crisis. 2019: Pay attention to the risks. 2020: A strong labor market is not a threat on its own. 2021: Don’t overreact to temporary inflation. 2022: There will be pain. Or not. 2023: Build confidence under uncertainty. Powell often appeals to the lessons of history for monetary policy, whether it’s from the Great Inflation of the 1960s or the Volcker Disinflation of the 1980s. However, this inflation cycle has defied the playbook in some ways. There are several principles in Powell’s first six Jackson Hole speeches that are relevant today, and there are many open questions on how his Fed might apply them. Those are the answers you should be listening for on Friday. https://lnkd.in/eyv6BVT3

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Per the link below, the Federal Reserve just announced "additional information about the periodic review of its monetary policy strategy, tools, and communications—the framework it uses to pursue its congressionally-assigned goals of maximum employment and price stability. "The review is focused on two specific areas: the Federal Open Market Committee's Statement on Longer-Run Goals and Monetary Policy Strategy, which articulates the Committee's approach to monetary policy; and the Committee's policy communications tools. The Committee's two percent longer-run inflation goal will not be a focus of the review." https://lnkd.in/ektPKDWR #economy #markets #centralbanks #federalreserve

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Today we get policy announcements from the Bank of England and the Federal Reserve. The “easy” part of the prediction is that both central banks will cut rates by 25 bps. Also, both are likely to signal subsequent cuts, they will be quite vague about how many while hinting at 25 bps magnitudes (rather than another Fed jumbo 50 bps). Harder to predict is how much each central bank will be willing to share about changes to their outlooks in light of recent developments. I suspect that the BoE is much more advanced in internalizing last week's UK budget news than the Fed with the potential policy approach of President-Elect Trump. #economy #markets #centralbanks #federalreserve

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https://lnkd.in/eGt897Pv The Fed is using discretion instead of a set of rules to approve or reject applications for master accounts. One implication is a death sentence for innovation in banking at the state level. The Fed is not a big fan of innovation in banking by new banks, or small or medium-sized banks, even federally chartered ones. This blog post by me explains some of the details and a recent decision ab out Custodia's application for a master account.

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Government will never learn its lesson so long as free-market principles are not upheld no matter who is in power. in this article, I argue that it would be a mistake for Donald Trump and Bernie Sanders to cap interest rates for credit card companies. Doing so will create a shortage of credit, which will compel credit card companies to toughen access to credit, especially for low-income borrowers who need it the most to build their credit. #economics #microeconomics #supplydemand #creditcardmarket #creditcardcompanies #governmentintervention #MarketDistortion

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Are the stars aligned for new crypto legislation in 2025? With new U.S. Senate leadership and fully behind crypto, 2025 may be the watershed year. FIT25?

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The Untaken Safer Alternative to Friedman/Neoliberalism/Capital Markets capture of the Economy and Society, is to - restate the purpose of social trusts as aggregators of society's shared savings for socially provisioning the social safety nets of Workplace Pensions and Civil Society Endowments to, in the words of the California State Constitution, "assure the prompt delivery of benefits to the participants" in Workplace Pensions, and the equivalent for Civil Society from Endowments, and to - reassess the powers that the fiduciary stewards of these social trusts hold, focusing especially on the power to use computer technologies of spreadsheet math, desktop publishing and digital communication to negotiate with enterprise directly that was not available when Milton Friedman did his most seminal work in the 1970s, but only became available in 1983, in order to - update our common sense of the possibilities for their exercise of that power to negotiate true to their purpose to deliver safety and security, now and in the future, both equally, and to - upgrade our common sense of the accountability of these stewards to our common sense of care (prudence) and caring (loyalty) in their exercise of plenary powers to choose who they will negotiate with, and what they will negotiate for.

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Join us on May 8 for a special presentation from Chip Espinoza, Ph.D., 'Seven Skills to Advance Your Career'. Learn more and get registered: https://bit.ly/3OfAjKI Our PD Session will be presented by Fifth Third Bank. Speakers: Morgan Luddeke, JD, CEPA®, Senior Vice President, Director, Business Transition Advisor Roman Lefranc, Senior Vice President, Managing Director, Investment Banking Corporate Finance Frieda Rakhman, Senior Vice President The seven skills are the result of an international study about Young Professionals at work. The research revealed what young professionals perceive to be roadblocks to advancing in their careers. The skills presented will demystify both the disappointment and frustration experienced while pursuing career success. The content of the talk will also be helpful for managerial leaders who are trying to develop younger employees. Among other things, we will discuss how to overcome a lack of experience, being perceived as entitled, and negative feedback. The skills are a career accelerator. #financialexecutivesinternational #cfoorangecounty #feioc

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As Sadek Wahba writes in the Financial Times, "A truly visionary infrastructure plan must embrace the transformative potential of PPPs [public-private partnerships], using recent advances in the way such arrangements are structured to address reservations that state and municipal policymakers may have. This is an issue that transcends ideological divides." As I was growing up, I would periodically ask my father, a management consultant who later directed economic development in San Jose, exactly what he did for a living. What was a consultant? What was economic development of cities? The answer always involved public-private partnerships, and I had no concrete picture of what that meant in practice until I read Sadek's wonderful book, which is full of examples from around the world, BUILD: INVESTING IN AMERICA'S INFRASTRUCTURE.

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#SUERFpolicybrief “Greater Than the Sum of Its Parts: Aggregate vs. Aggregated Inflation Expectations” by Alexander M. Dietrich (Danmarks Nationalbank), Edward S. Knotek II (Federal Reserve Bank of Cleveland), Kristian Ove R. Myrseth (University of York), Robert W. Rich (Federal Reserve Bank of Cleveland), Raphael Schoenle (Brandeis University), and Michael Weber (The University of Chicago Booth School of Business) This policy brief presents the results of Dietrich et al. (2023). The paper introduces a novel measure of consumer inflation expectations: We elicit and combine inflation forecasts across categories of personal consumption expenditure to form an aggregated measure of inflation expectations. Drawing on nearly 60,000 respondents, our data comprise the early low-inflation environment of the COVID pandemic and the 2021 inflation surge. Conventionally elicited inflation expectations consistently exceed aggregated measures constructed under plausible weighting schemes. Aggregated measures display less disagreement and volatility and are stronger predictors of consumers’ spending plans. The relative informational value of aggregated measures rises with the individual-level gap between conventional and aggregated inflation expectations. Our results chart a new course for designing the measurement of inflation expectations. https://lnkd.in/dkbZ59gi #HouseholdExpectations #Survey #SectoralExpectations #InflationExpectations

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